Warren Buffett

Benjamin Graham (1894-1976) in 1950

Dundee HD Omaha NE

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Storm Chasers press conference

Kathy Ireland, Warren Buffett and Bill Gates at the 2015 Berkshire Hathaway Shareholders Meeting

President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010

Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway, a multinational conglomerate holding company. Buffett is considered one of the most successful investors in the world and has a net worth of over $100 billion as of 2023, making him one of the wealthiest people in the world.

Early Life

Warren Buffett was born in Omaha, Nebraska, to Howard and Leila Buffett. His father was a U.S. congressman and stockbroker. Warren showed an early interest in business and investing. He made his first investment in the stock market at the age of 11 and filed his first tax return at age 13, claiming a deduction for a bicycle used on his paper route.

Career

Buffett's career in finance began at Benjamin Graham's partnership. After working for Graham, he returned to Omaha and started his own investment partnership in 1956. His strategy focused on finding undervalued companies with strong potential for growth. This approach, often referred to as "value investing," became the hallmark of his success.

In 1965, Buffett's partnership began buying shares in Berkshire Hathaway, a struggling textile company. Eventually, Buffett took control of the company and transformed it into a holding company for his investments in various businesses, including insurance, energy, manufacturing, and retail.

Under Buffett's leadership, Berkshire Hathaway has achieved an average annual growth in book value of over 20%, a rate significantly higher than the S&P 500 index with dividends included for the same period.

Investment Philosophy

Buffett's investment philosophy can be summarized by his emphasis on purchasing quality companies at reasonable prices, a principle rooted in his early influence by Benjamin Graham. He advocates for a long-term investment horizon and is known for his patience and discipline in waiting for the right opportunity to invest.

Philanthropy

Warren Buffett is also known for his philanthropic efforts. In 2006, he pledged to give away 99 percent of his fortune to philanthropic causes, primarily via the Bill & Melinda Gates Foundation. This pledge, known as the Giving Pledge, has inspired other wealthy individuals to donate a significant portion of their wealth to charity.

Personal Life

Buffett has been married twice and has three children. He is known for his frugal lifestyle, residing in the same house in Omaha that he purchased in 1958.

Legacy

Warren Buffett's legacy is not only in his achievements as an investor but also in his contributions to the field of investment theory and his philanthropic efforts. He is revered for his wisdom and often quoted for his insights on investment and life.